Life is unpredictable, and you can never know what’s waiting for you just around the corner. While this is what makes life so exciting, it’s also something that can cause a lot of trouble. Many families in Michigan are just one medical emergency away from financial ruin. Just one minor car crash or unexpected day off work can put a significant strain on a person’s financial stability and their livelihood.
In cases like these, it’s important to have something that you can rely on.
Personal injury insurance can offer you the support that you require in times of need. It’s designed to act as your safety net when life brings less than pleasant surprises. Personal insurance plans in Michigan come in all shapes and sizes, and personal injury insurance will have your back when you most need it.
Let’s see exactly what personal injury protection entails and whether you can benefit from it.
What Is Personal Injury Protection?
Personal Injury Protection, commonly known as PIP or No-Fault insurance, is an extension of your car insurance. While it’s not legally required to have PIP insurance in some states, Michigan’s No-Fault Law does make it mandatory.
With personal injury insurance, your healthcare costs will be covered in case of a car accident, regardless of the specific cause of it. PIP will not only cover for the expenses of the policyholder who sustained injuries, but for any passengers that were present in the car at the time of the accident as well. In some cases, even passengers who have no health insurance will also be covered.
Personal injury protection policy typically comes with a per-person maximum. What this means is that the amount of coverage has a strict limit that cannot be exceeded per person. The more people are injured in a car accident, the smaller the coverage amount per each individual.
If the medical expenses exceed the limits of personal injury insurance policy, health insurance will typically cover for the rest, but you will need to check with your insurance provider to be sure.
Benefits of Personal Injury Protection
Commonly referred to as No-Fault insurance, the primary benefit of this type of insurance can be easily concluded from the name.
With primary auto insurance, it’s the responsibility of the insurance company of the driver who’s caused the accident to cover for the expenses of the said accident. How much is covered depends on the policy limits of the at-fault driver.
With personal injury protection, it doesn’t matter who was at fault. Whether you’ve caused the accident or not, you and your passengers’ medical expenses will be covered by the insurance provider.
As long as the accident is covered by personal injury insurance, you won’t have to assess who’s at fault. You’ll receive payments for your medical bills and potential lost wages either way.
Personal Injury Protection Coverage
Personal injury protection offers coverage for most expenses related to car accidents. You will receive payments for any resulting medical procedures, necessary treatments for injuries, and your medical expenses will be covered in case you were a passenger or a pedestrian injured in a car accident.
Depending on your personal injury protection policy, you might also receive coverage for:
- Necessary operations
- Ongoing professional care
- Lost wages (in case you’re unable to go to work due to the injuries you’ve sustained)
- Funeral costs
- Home care expenses (e.g. childcare in case you cannot take care of your children due to the injuries you’ve sustained)
Personal Injury Protection, Liability Insurance, & Medical Payments Coverage
Personal injury protection is often confused for liability insurance, but there are some major differences. Primarily, liability insurance is a legal requirement in all states besides New Hampshire and Virginia. PIP is a requirement in a few states, including Michigan.
Secondly, liability insurance doesn’t cover your expenses in case of a car accident. It covers the expenses for injuries sustained by others. If the car accident was your fault, and you’ve caused injury to the other driver(s), passenger(s), or pedestrian(s), liability insurance will cover for their medical costs only.
As mentioned, personal injury protection will cover for your and your passengers’ medical expenses regardless of whose fault the accident was.
Medical payments coverage is much more similar to personal injury protection. It also offers coverage for medical expenses for you and your passengers, regardless of who caused the accident. However, only the medical costs are covered.
Medical payments coverage does not cover things such as rehabilitation costs, lost wages, funeral costs, and others. Those are only covered by personal injury protection.
Personal Injury Protection Michigan
Melton McFadden offers extensive personal injury protection insurance policies that will provide you financial stability after a stressful car accident. This insurance is a legal requirement in Michigan, and it will give you numerous benefits in times of need.
Contact us if you’d like to find out more about personal injury protection and all the ways that it can help you!